THE TAXATION LAWS (AMENDMENT) ORDINANCE, 2001 No. 2 OF 2001 Promulgated by the President in the Fifty-second …

REGISTERED NO. DL-33004/2001

The Gazette of India

EXTRAORDINARY

PART II —Section 1

PUBLISHED BY AUTHORITY

No. 5] NEW DELHI,SATURDAY,EEBRUARY3,2001/M\GHA 14,1922

Separate paging is given to this Part in order that it may be filed as a separate compilation.

MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS

(Legislative Department)

New Delhi, the 3rd February, 2001/Magha 14, 1922 (Saka)

THE TAXATION LAWS (AMENDMENT) ORDINANCE, 2001

No. 2 OF 2001

Promulgated by the President in the Fifty-second Year of the Republic of India.

An Ordinance further to amend the Finance Act, 2000 and the Income-tax Act, 1961.

Whereas Parliament is not in session and the President is satisfied that circumstances

exist which render it necessary for him to take immediate action;

NOW, THEREFORE, in exercise of the powers conferred by clause (1) of article 123 of

the Constitution, the President is pleased to promulgate the following Ordinance:—

1. (/) This Ordinance may be called the Taxation Laws (Amendment) Ordinance, 2001

(2) It shall come into force at once.

Short title and commence- ment.

10 of 2000. 2. In section 2 of the Finance Act, 2000 (hereinafter referred to as the principal Act),—

(a) in sub-section (4),—

Amendment of section 2 of Finance Act, 2000.

(t) in clause (a), for the words "ten per Cent." the words "twelve per cent."

shall be substituted;

(ii) in clause (b), for the words "eleven per cent.", the words "thirteen per

cent." shall be substituted;

(b) in sub-section (6),—

(i) in clause (a), for the words "ten percent." the words "twelve per cent."

shall be substituted;

2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—

(ii) in clause (b), for the words "eleven per cent.", the words "thirteen per cent." shall be substituted;

0") in clause (a), for the words "ten percent." the words "twelve per cent.' shall be substituted;

(ii) in clause (b), for the words "eleven per cent.", the words "thirteen per cent." shall be substituted;

(d) in sub-section (#), in the third proviso, in clause (a),—

(i) in sub-clause (0, for the words "ten per cent.", the words "twelve per cent." shall be substituted;

(ii) in sub-clause (ii),—

(A) in item (A), for the words "ten per cent.", the words "twelve per cent." shall be substituted;

(B) in item(B), for the words "Dfteen per cent.", the words "seventeen per cent." shall be substituted.

(

(/) in sub-section (9), in the proviso,—

("') in clause (a),—

(A) in sub-clause (i), for the words "ten per cent.", the words "twelve per cent." shall be substituted;

(B) in sub-clause (ii), for the words "fifteen per cent.", the words "seventeen per cent." shall be substituted;

(ii) in clause (b), for the words "ten per cent", the words "twelve per cent." shall be substituted.

3. In the First Schedule to the principal Act—

(a) in Part II, under the beading, "Surcharge on income-tax",—

Amendment of the First Schedule.

(i i in item (a\ for the words 'ten per cent." the words "twelve per cent." shall be substituted; •

Hi) ;n item (h), for the words '.eleven per cent", the words "thirteen per cent." Ki::iH k .'ubslitutcd:

(b) in Pail III, in Paragraph A, under the heading "Surcharge on income-ua",—

(i) in item (/),—

(A) in sub-item (A), for th

(B) in sub-item (B), for tne words "fifteen per cent", the words "seventeen per cent." shall be substituted;

(ii) in item (ii), for the words "len per cent.", the words "twelve per cent." shall be s>jb;;tiruled;

(c) in Pan IQ, in Paragraph 13, under the heading "Surcharge on income-tax", for the words "ten pei cent", the words "twelve per cent." shall be substituted;

(

(c) in Part HI, in Paragraph D, under the heading "Surcharge on income-tnx", for the words "ten per cent", the words "twelve per cent" shall be substitutedSEC 1] THE GAZETTE OF INDIA EXTRAORDINARY 3 (f) ill Part HT, in Paragraph E, under the heading "Surcharge on income-tax", for

the words "eleven per cent.", the words "thirteen per cent." shall be substituted.

43 of 1961.

4. In section 10 ofthe Income-tax Act, 1961 (herein after referred to as the Income-tax Act), in clause (2iO, after the eighth proviso, the following proviso shall be inserted, namely: ~

Amendment o[ section 10 of the 'llcome-rax A el "Provided also that any amount of donation received by the fund or institution in terms of clause (d) of sub-section (2) of section SOG which has been utilised for purposes other than providing relief to the victim^ of earthquake in Gujarai or which remains unutilised in terms of sub-section (5(J) of section 80G .aid not transferred to the Prime Ministers' National Relief Fund on or before the 31st day of March, 2002 shall be deemed to be th'.¹ income ofthe previous year and shall accordingly be charged to tax.".

5. In section 12 of the Income-tax Act, after sub-section (2) and the explanation Amendment of section 12, thereto, the following sub-section shall be inserted, namely:—

"(3) Notwithstanding anything contained in section 11, any amount of donation received by the trust or institution in terms of clause (d) of sub-section (2) of section 80G which has been utilised for purposes other than providing relief to the victims of earthquake in Gujarat or which remains unutilised in terms of sub-section (5C) of section 80G and not tiansferred to the Prime Ministers' National Relief Fund on or before the 31st day of March, 2002, shall be deemed to be the income of the previous year and shall accordingly be charged to tax.".

6. In section 80G ofthe Income-tax Act,—

Amendment of section 80G.

(a) in sub-section (7), in clause (0,—

(i) after the words, brackets, figures and letter "or in sub-clause (Uig)", the

words, brackets, figures and letter "or in,sub-clause (iiiga)" shall be inserted;

(ii) after the words, letter and brackets "or in clause (c)", the words, letter

and brackets "or in clause (d)" shall br inserted;

(b) in sub-section (2),—

(0 in clause (a), after the sub-clause (Uig), the following sub-clause shall

be inserted, namely:—

"(iiiga) any fund set up by the State Government of Gujarat

exclusively

for providing relief to the victims of earthquake in Gujarat.";

(it) after clause (c), the following clause shall be inserted, namely:—

"(d) any sums paid by the assessee, during the period beginning on the 26th day of January, 2001 and ending on the 30th day of September, 2001, to any trust, institution or fund to which this section appltes for providing relief to the victims of earthquake in Gujarat.";

"($£) This sub-section applies in relation to amounts referred to in clause (d) of sub-section (2) only if the trust or institution or fund is established in India for a charitable purpo&c.and it fulfills the following conditions, namely:—

(i) it is approved in terms of clause (vz) of sub-section (5);

(ii) it maintains scp.uate accounts of income a.nd expenditure for

providing relief to the victims of earthquake in Gujarat;

(Hi) the donations ma'de to the trust or institution or fund are ap- plied for providing relief to the earthquake victims of Gujarat on or before the 31st day of March, 2002;

4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—SEC. 1]

(zv) the amount of donation remaining unutilised on the 31 st day of March, 2002 is transferred to the Prime Minister's National Relief Fund on or before the 31st day of March, 2002;

(v) it renders accounts of income and expenditure to such authority and in such manner as may be prescribed, on or before the 30th day of June. 2002.".

7. In Section 234C of the Income-tax Act, in sub-section (1), after the second proviso,

the following shall be inserted, namely;—

Amendment of section 234C-

"Provided also that nothing contained in this sub-section shall apply to any shortfall in the payment of the tax due on the returned income where such shortfall is on account of increase in the rate of surcharge under section 2 of the Finance Act, 2000 as amended by the Taxation Laws (Amendment) Ordinance, 2001 and the asscssee • has paid the amount of shortfall on or before the 15th day of March, 2001 in respect of the instalment of advance tax due on the 15th day of June, 2000, the 15th day of September, 2000 and 15th day of December, 2000,".

8. Notwithstanding anything contained in the Income-tax Act, the surcharge payable

under section 2 of, and Part 111 of tlic First LSchedule to, the principal Act, as amended by this Ordinance,-—

Instalment of advance tax in case of additional surcharge, payable on 15th March, 2001.

(i) in the case of an assessce, in respect of the instalment of "advance tax" paid or payable on or before the 15th day of June, 2000, the 15th day of September, 2000 and the 1.5th. day of December, 2000, shall be payable on or before the 15th day of March, 2001;

(ii) in any case in which income-tax has to be charged under sub-section (4) Of section 172 or sub-section (2) of section 174 or section 175 or sub-section (2) of section 176 of the Income-tax Act, shall be payable, only where such income-tax is so charged after the date on which this Ordinance comes into force.

K.R. NARAYANAN, President.

SUBHASH C. JAIN,

Secy, to the Govt, of Indie

Corrigendurh

In the Indian Council of World Affairs Ordinance, 2001 (Ord. 1 of 2001) as published in the Gazette of India, Extraordinary, Part IL Section 1, dated the 5ih January, 2001 (Issue No, 4) at page 4, in line 9, for Vnkise", read "clause".

PRINTED BY THE MANAGER, GOVT. OF INDIA PRESS, (l'LU) MINTO ROAD, NEW DELHI

AND FUHUSHfcD BY THE PQNTROLLER OF PUBLICATIONS, DELH1-2001.